Labor Flexibility, Ownership and Firm Performance in China

Lane, Julia; Broadman, Harry G.; Singh, Inderjit

doi:10.1023/a:1007732215095

Cited by 14 publications

(11 citation statements)

References 11 publications

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“…Using a large 1980-90 sample of firms in China, Lane, Broadman, and Singh (1998) find a negative effect of the state and collective ownership on both job creation and job destruction (Panel B of Table 6) but no control group is presented. The effect on job destruction appears to be marginally larger than that of the job creation but the authors did not formally test for a difference between the two effects.…”

Section: Employmentmentioning

confidence: 99%

The Effects of Privatization and Ownership in Transition Economies

Estrin

Hanousek

Kočenda

et al. 2009

Journal of Economic Literature

529

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In this paper, we evaluate what we have learned to date about the effects of privatization from the experiences during the last fifteen to twenty years in the postcommunist (transition) economies and, where relevant, China. We distinguish separately the impact of privatization on efficiency, profitability, revenues, and other indicators and distinguish between studies on the basis of their econometric methodology in order to focus attention on more credible results. The effect of privatization is mostly positive in Central Europe, but quantitatively smaller than that to foreign owners and greater in the later than earlier transition period. In the Commonwealth of Independent States, privatization to foreign owners yields a positive or insignificant effect while privatization to domestic owners generates a negative or insignificant effect. The available papers on China find diverse results, with the effect of nonstate ownership on total factor productivity being mostly positive but sometimes insignificant or negative.

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Section: Employmentmentioning

confidence: 99%

The Effects of Privatization and Ownership in Transition Economies

Estrin

Hanousek

Kočenda

et al. 2009

Journal of Economic Literature

529

View full text Add to dashboard Cite

show abstract

“…A related measure of fluctuation in capacity is the variance of the labor-IT capital ratio. We conjecture that firms respond to external shocks by changing their labor pool, while fixed investments are more difficult to change, resulting in higher variance of the labor-capital ratio (Lane et al 1998). Given our interest in IT outsourcing, we focus on the labor-IT capital ratio.…”

Section: Variables For the Selection Equationmentioning

confidence: 99%

Information Technology Outsourcing, Knowledge Transfer, and Firm Productivity: An Empirical Analysis

2012

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Firms are increasingly sourcing internal information systems functions from external service providers. However, there is limited empirical evidence of the economic impact of this delivery option and, more specifically, of the productivity gains accruing to firms that have outsourced. Moreover, there is little evidence of the role and contributions of the individual mechanisms by which service providers create value for client firms. We are particularly interested in whether client firms benefit from the accumulated knowledge held by information technology (IT) service firms. In this paper, we examine the impact of IT outsourcing on the productivity of firms that choose this mode of services delivery focusing, on the role of IT-related knowledge. Since firms selfselect into their optimal sourcing mode, we use a variety of econometric techniques including propensity scorebased matching and switching regression to control for potential bias arising from endogenously determined sourcing modes. We demonstrate that IT outsourcing does lead to productivity gains for firms that select this mode of service delivery. Our results also suggest that IT-related knowledge held by IT services vendors enables these productivity gains, the magnitude of which is moderated by a firm's IT intensity. Moreover, the value of outsourcing to a client firm increases with its propensity for outsourcing, which in turn depends on firm-specific attributes including efficiency level, financial leverage, and variability in business conditions. Our analyses also show that firms that outsource have been able to achieve additional productivity gains from contracting out compared with their counterfactuals.

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“…Thus, theoretical evidence suggests that privately-owned enterprises outperform state-owned organizations economically, by and large. Indeed, empirical evidence indicates that organizational performance in terms of factor productivity or profitability is negatively associated with government control, and positively with privatization (Lane, Broadman, and Singh 1998;Li 2004;Ai and Wen 2005;Chen and Zhu 2005). Specific to the construction industry, DRCSC (1998) finds that SOEs' profitability is significantly lower than that of collectively-owned and privately-owned enterprises.…”

Section: Discussionmentioning

confidence: 99%

Toward an institutional ecology of establishment of foreign firms in the Chinese construction industry

Zhou

2010

Journal of Chinese Economic and Business Studies

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In the current study, an integration of insights from institutional theory and organization ecology is used to explain the relationship between industry-level ownership structure and the establishment of foreign invested firms in the Chinese construction industry. It is argued that in a stated-owned enterprises dominated environment, where the market forces are weak, legitimation is the major driving force harming the proliferation of foreign firms, whereas in a private-enterprise dominated environment, where the market forces are strong, competition is the major driving force inhibiting the viability of foreign firms. Thus, concentration of either state ownership, implying lower legitimation of the foreign firm form, or concentration of private ownership, triggering tough competition from domestic private firms, is hypothesized to have a negative impact on the number of foreign firms. Using a regional data set from 1994 to 2007, estimation of a cross-section-time series model largely confirms our theoretical claims.institution theory, organization ecology, legitimation, competition, China,

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Labor Flexibility, Ownership and Firm Performance in China

Cited by 14 publications

References 11 publications

The Effects of Privatization and Ownership in Transition Economies

The Effects of Privatization and Ownership in Transition Economies

Information Technology Outsourcing, Knowledge Transfer, and Firm Productivity: An Empirical Analysis

Toward an institutional ecology of establishment of foreign firms in the Chinese construction industry

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